The S&ED has both a "Strategic Track" and an "Economic Track". U.S. Secretary of State John Kerry and Chinese State Councilor Yang Jiechi co-chair the "Strategic Track". U.S. Secretary of the Treasury Jack Lew and Chinese Vice Premier Wang Yang co-chair the "Economic Track" (as of 2013).[3][4]

The creation of the S&ED was announced on April 1, 2009 in London at the G-20 summit by President Barack Obama and President Hu Jintao during their first meeting.[5] The upgraded mechanism replaced the former Senior Dialogue and Strategic Economic Dialogue started under the George W. Bush administration. High-level representatives of both countries and their delegations meet annually at capitals alternating between the two countries. The first meeting was held in Washington, D.C. on July 27–28, 2009.

It has been suggested by analysts and media that the S&ED constitutes an important part of the G-2 relationship between the United States and China.[6][7][8][9] Experts say that it can promote political trust, constructive engagement, and collaboration between the two countries.[10]

The S&ED is an ongoing and intensive mechanism for addressing the challenges and opportunities that the United States and China face on a wide range of regional and global areas of immediate and long-term strategic and economic interests. Both President Barack Obama of the U.S. and President Hu Jintao of China have placed the S&ED at the center of the bilateral relationship and are committed to delivering concrete, meaningful, and sustained progress over time on long-term strategic and economic objectives through the S&ED. The 2009 Dialogue will provide an opportunity to establish a framework for those discussions moving forward.[11]

The S&ED is organized around a high-level, cross-cutting structure that addresses the geopolitical nature of mutual concerns in strategic and economic discussions. The S&ED provides a forum for ongoing and productive bilateral engagement between U.S. and Chinese officials with diverse responsibilities for both economic and strategic issues. The structure of the S&ED allows for a plenary session to discuss issues of cross-cutting strategic and economic importance, while maintaining distinct strategic and economic tracks. Each respective track will involve focused discussions on issues of mutual immediate and long-term strategic or economic interest. The S&ED will meet semi-annually to facilitate robust engagement and progress between dialogues through coordination with existing bilateral dialogues and working-level interactions.[11]

The S&ED brings together senior leadership representing the U.S. and Chinese governments. Special representatives are appointed by Presidents of both countries. Various other U.S. Cabinet and sub-Cabinet officials and heads of Chinese ministries, bureaus and commissions will participate in the Dialogue depending on the issues being discussed.

Vice Premier Wang Qishan held talks with Congressmen Rick Larsen and Mark Kirk, former U.S. Treasury Secretary Henry Paulson and Justin Yifu Lin, chief economist and senior vice president of the World Bank, on July 26, 2009 prior to the S&ED.[13][14] Secretary of State Hillary Clinton hosted a dinner on July 26, 2009 for Chinese State Councilor Dai Bingguo.[15] In an opinion piece published in The Wall Street Journal, Clinton and Timothy Geithner wrote about the U.S.–China relationship and the new S&ED. They added, "Simply put, few global problems can be solved by the U.S. or China alone. And few can be solved without the U.S. and China together", citing the "strength of the global economy, the health of the global environment, the stability of fragile states and the solution to nonproliferation challenges" as aspects that both countries have to cooperate on.[16]

Hillary Clinton, Wang Qishan, Timothy Geithner, Dai Bingguo and President Obama addressed the opening ceremony of the first S&ED on July 27, 2009.[17] President Hu sent a congratulatory message read out by Wang. Obama said in his speech, "The relationship between the United States and China will shape the 21st century, which makes it as important as any bilateral relationship in the world. That really must underpin our partnership. That is the responsibility that together we bear."[18] The opening ceremony of the first Dialogue was held in the Ronald Reagan Building and International Trade Center.[19]

The agenda included the global economic interest, North Korean nuclear weapons production and proliferation, climate change, and overseas development assistance. Chinese participants met with and were addressed by President Barack Obama and spent some time on Capitol Hill meeting with members.[20] They also met with Vice President Joe Biden.[21] China brought more than 150 senior officials, including 28 minister-level officials and nearly its whole Cabinet, one of the largest and highest-level official Chinese delegations ever to come to the U.S.[22] Chinese central banker Zhou Xiaochuan, Chinese Finance Minister Xie Xuren, the Chinese head of the banking regulatory commission, Liu Mingkang, and the head of securities regulatory commission, Shang Fulin, participated in the dialogue.[23] China's Vice Foreign Minister Wang Guangya also participated.

Chinese Vice Premier Wang Qishan, center, holds the autographed basketball given to him by President Barack Obama following their Oval Office meeting Tuesday, July 28, 2009, to discuss the outcomes of the first U.S.–China Strategic and Economic Dialogue. Looking on at left is Chinese State Councilor Dai Bingguo.

In an effort to reassure the Chinese about their investment, Obama rolled out top officials to meet with Chinese representatives including Federal Reserve Chairman Ben Bernanke, National Economic Council Director Lawrence Summers and Peter Orszag, Obama's budget director, and U.S. Trade Representative Ron Kirk among others.[24] Federal Reserve Chairman Bernanke briefed Chinese officials about how the U.S. plans to keep inflation in check over the next few years.[25] U.S. Secretary of Labor Hilda Solis, U.S. Health and Human Services Secretary Kathleen Sebelius and U.S. Ambassador to the United Nations Susan Rice also participated in the Dialogue.[26]The New York Times reported how 200 Chinese bankers, bureaucrats and policymakers scrutinized Obama's economic strategy and commented "how much the global financial crisis has changed the subtle balance of power in meetings of 'the G2'".[27]

The U.S. and China also announced a resumption of routine military contacts and high-level visits by defense officials when Admiral Timothy Keating met with his Chinese counterpart during the dialogue.[28]

On July 29, Wang Qishan met with Ben Bernanke and exchanged views on bilateral issues and other issues of mutual concern. Dai Bingguo had breakfast with a group of U.S. senators including Senator John Kerry and Senator Richard Lugar on Capitol Hill.[29][30]

U.S. Secretary of State Hillary Rodham Clinton, Chinese State Councilor Dai Bingguo, U.S. Timothy Geithner, Chinese Vice Premier Wang Qishan and other participants of the U.S.–China Strategic and Economic Dialogue pose for a family photo on July 27, 2009.

U.S. Secretary of State Hillary Rodham Clinton, Chinese State Councilor Dai Bingguo and other participants of the Strategic Track in the U.S.–China Strategic and Economic Dialogue pose for a family photo at the U.S. Department of State on July 28, 2009.

The first Dialogue provided an opportunity not only for the four co-chairs, Secretary of State Clinton and Secretary of the Treasury Geithner, Vice Premier Wang Qishan, and State Councilor Dai, but also for over 20 officials of Cabinet-rank from each side to meet face-to-face and to discuss a range of substantive issues.[31]

As special representatives of President Barack Obama and President Hu Jintao, U.S. Treasury Secretary Timothy Geithner and Chinese Vice Premier Wang Qishan were joined by many high-level officials for the Economic Track.[34]

On the U.S. side, they were joined by the following Cabinet members and other senior officials:

Over 200 senior U.S. officials arrived in Beijing for the meeting and a large delegation from China also participated. 15-18 U.S. cabinet officials and agency heads participated making it one of the largest U.S. delegation to travel to a foreign country.

As special representatives of President Barack Obama and President Hu Jintao, U.S. Treasury Secretary Timothy Geithner and Chinese Vice Premier Wang Qishan were joined by many high-level officials for the Economic Track.[39]

Officials from more than 20 Chinese government agencies also participated in the dialogue, including the Foreign Ministry, National Development and Reform Commission (NDRC), Ministry of Finance, Ministry of Commerce and the People's Bank of China.[41]

Vice Premier Wang Qishan said in his speech that History and reality both have shown and future will ultimately prove that no difficulty can ever stop the trend of cooperation between China and the US, in which we are full of confidence. Such confidence comes from the wide common interest between the two countries, from the common aspiration of the Chinese and the US people and from historic and philosophic thoughts. The two sides should take the opportunity of this round of SED to carefully implement the important consensus reached between the two heads of state, comprehensively deepen cooperation in the fields of trade and economy, investment, finance and infrastructure and boost the strong, sustained and balanced growth of their own economy and the world economy at large.[40]

State Councilor Dai Bingguo said that China and the US launched the "ping pong diplomacy" 40 years ago and Dr. Henry Kissinger paid a secret visit to China. The aspiration of friendship between the Chinese and the US people and the determination and courage of politicians of the two countries converged into an irresistible historical trend and opened the door of China-US relations which had been closed for more than 20 years. Since then, there has been no force in the world capable of closing that door again. China-US relations stand at an equally critical historic moment at present. President Hu and President Obama, when meeting in Washington in January this year, agreed to establish and develop the cooperative partnership based on mutual respect and mutual benefit, pointing out the direction for the future development of bilateral ties. History is proving and will continue to prove that this critical decision with historical significance complies with the trend of history and will benefit the Chinese and the US people and the entire mankind.[40]

Secretary of StateHillary Clinton said that the third round of SED aims at strengthening the bilateral understanding and trust, in particular understanding each other's strategic purpose and common interest, avoiding misunderstanding and wrong judgment. The way the US and China jointly address regional and international challenges will determine the future of US-China relations as well as prosperity and peace in the world. The two countries should join hands to push forward their cooperative partnership.[40]

Treasury Secretary Timothy Geithner said that the world economy was suffering from the heavy impact of financial crisis when the SED was initiated two years ago. With the concerted efforts of the US and China, the world has successfully stepped out of the crisis and resumed growth. But the US and China still face challenges. The US needs to consolidate the foundation of future economic growth, improve education, encourage innovation, increase investment and conduct financial reform. China needs to build a new growth mode, expand domestic demand and improve its market economy and financial system. The reforms of the US and China do not have any conflict but can help each other. The cooperation between the US and China is critical to the health and stability of the global economy and the two countries should cope with challenges together.[40]

A framework of comprehensive economic cooperation (the Framework) was elaborated in the third round of S&ED.

The United States and China affirm that both countries will, based on common interest, promote more extensive economic cooperation, from a strategic, long-term, and overarching perspective, to work together to build a comprehensive and mutually beneficial economic partnership, add to prosperity and welfare in the two countries, and achieve strong, sustainable, and balanced growth of the world economy.[42]

Both countries recognize the fundamental consistency between their goals to promote strong, sustainable, and balanced growth, and commit to further strengthen macroeconomic-policy communication and coordination.[43]

III. Develop a More Balanced Trade and Investment Relationship(Clause 8-13)

The two countries recognize the importance of open trade and investment for promoting innovation, creating jobs, and boosting incomes and economic growth. The United States and China are committed to further expanding bilateral trade and investment, fostering more open trade and investment globally, and fighting against trade and investment protectionism.[43]

IV. Deepen Cooperation in the Financial Sector (Clause 14-15)

The two countries pledge to further deepen bilateral and multilateral cooperation on financial sector development, investment, regulation, and supervision, and cooperate to support flows of productive capital into, and the efficiency and stability of, financial markets of both countries.[43]

The two sides commented positively on the progress in U.S.-China relations since President Hu Jintao’s state visit to the United States in January 2011, reaffirmed their commitment to the January 19, 2011 U.S.-China Joint Statement, and in accordance with the Joint Statement, committed to nurture and deepen bilateral strategic trust and work together to build a cooperative partnership based on mutual respect and mutual benefit. The discussions produced 48 specific outcomes.[44]

1. Decided to work together to make thorough preparations for bilateral high-level exchanges in coming months. Both Presidents look forward to meeting again this year. The two sides decided that upcoming meetings such as the G20 Summit, the East Asia Summit, and the U.S. - hosted APEC Leaders’ meeting provide further opportunities for high-level engagement. China welcomed Vice President Biden’s upcoming visit to China. The United States welcomed a subsequent visit by Vice President Xi Jinping.

3. Acknowledged that the two sides share a wide range of common interests with a shared goal of maintaining peace, stability, and prosperity in the Asia-Pacific region, and decided to establish a U.S.-China consultation on the Asia-Pacific. The two sides intend to hold the first round at the earliest time this year.

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7. Before the next round of the S&ED, decided to hold a new round of sub-dialogues on: policy planning, Africa, Latin America, South Asia and Central Asia, and to enhance bilateral coordination and cooperation on regional and international issues.

20. Decided to further deepen ongoing cooperation to combat corruption, including bribery of public officials, through bilateral and multilateral fora, including the U.S.-China Joint Liaison Group on Law Enforcement Cooperation (JLG), the APEC Anticorruption and Transparency Experts Working Group, the G20 Anticorruption Working Group, the United Nations Anticorruption Convention as well as other multilateral frameworks. China expressed support for the APEC Anticorruption Task Force meetings to be hosted by the United States during its chairmanship of APEC 2011.

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24. Continue to periodically exchange visits of maritime officials and welcome visits of each other’s maritime law enforcement vessels. The U.S. Coast Guard’s Pacific Area Commander, Vice Admiral Manson Brown, intends to visit China May 29 to June 4 and meet with representatives of several Chinese agencies supporting maritime governance.

47. Signed the Memorandum of Understanding Regarding Cooperation in Law Enforcement Matters between U.S. Customs and Border Protection and the International Cooperation Department of the Chinese Ministry of Public Security.

Held breakout sessions on UN peacekeeping, Sudan, law enforcement cooperation, climate change, de-mining and conventional weapons destruction, as well as electronics stewardship, and conducted a series of bilateral meetings between senior officials on a broad range of issues covering the entire strategic track of the U.S.-China relationship.

In order to promote a more balanced trade relationship, China will continue to take steps to expand domestic consumption and imports in accordance with the 12th Five-Year Plan; and the United States will increase domestic savings and exports, including through the National Export Initiative. China takes promotion of employment as the priority objective for economic development, and strives to achieve full employment. China strives to raise the proportion of residents’ income in gross national income, increase the proportion of wages in the primary income distribution, and realize the increase of people’s income in line with economic development and the increase of workers’ pay in line with gains in labor productivity. China’s minimum wage has steadily increased in recent years and will continue to do so in the future. China will raise the ratio of services value-added to Gross Domestic Product (GDP) by four percentage points over the next five years, with measures to develop the services sector including expanding areas open to foreign involvement, encouraging and guiding a variety of categories of capital into the services sector, and actively developing services enterprises with diversified forms of ownership.

The U.S. economy is rebalancing toward sustainable growth, emphasizing higher domestic savings, a commitment to improving long-term fiscal sustainability and productivity-enhancing investments. The personal savings rate was 5.8 percent in 2010, which is the highest rate since 1993 and well above the 2.7 percent average between 2000 and 2007. Thus, much of the transition on the private side to higher saving has already taken place. To increase public saving, the President’s Budget freezes discretionary spending for five years, freezes government salaries for two years, and brings the deficit to three percent of GDP by the second half of this decade – a path consistent with the Administration’s commitments to cut the deficit in half by 2013, and to stabilize or reduce the national debt as a share of the economy. To lay the foundation for future growth, including through greater U.S. exports, the United States will increase and improve investment in innovation, infrastructure, and education.

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The two countries reiterate their support for the G-20 Framework for Strong, Sustainable, and Balanced Growth, and reaffirm their commitments to improve the living standards of our citizens through strong economic and jobs growth, and use the full range of policies required to strengthen the global recovery and to reduce excessive external imbalances and maintain current account imbalances at sustainable levels. The two sides support a bigger role for the G-20 in international economic and financial affairs, and pledge to strengthen communication and coordination to follow through on the commitments of the G-20 summits and push for positive outcomes at the Cannes summit in November.

The two countries reaffirmed their commitment to deepen bilateral and multilateral cooperation on financial sector investment and regulation, in order to enhance global regulation, establish stronger international coordination to prevent future crises, and ensure a level playing field. Recognizing the positive contributions that financial institutions from each country can play, the two sides pledged to support open environments for investment in financial services and cross-border portfolio investment, consistent with prudential and national security requirements.

The United States and China commit to further promote and strengthen financial sector reform. Following the passage of the Dodd-Frank Act, the United States is implementing comprehensive financial reform that better serves households, workers, entrepreneurs, and businesses by reducing systemic risk, raising prudential standards, establishing a comprehensive regulatory framework for derivatives, ending the problem of “too big to fail” financial institutions, creating a Federal Insurance Office, and ensuring robust consumer financial protection.

China will continue to deepen the reform of its financial system, which has supported the process of transforming its economic development model, developing a financial system that consists of diverse institutions, provides efficient service, controls risks, and encourages financial innovation. China will increase the use of direct financing channels, including stocks, bonds and private equity, to better satisfy the diverse demands in its economy for investment capital and financing. In accordance with the medium- and long-term development perspectives, China will push forward the market-based reform of interest rates.

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The United States and China committed to further strengthen their respective financial systems against money laundering, counterfeiting, terrorism financing, and WMD proliferation financing activities. China will continue to develop and strengthen its regulatory framework for freezing terrorist assets. The two countries will continue to enhance both policy and operational cooperation on combating illicit finance. The two countries will also continue to work collaboratively in the freezing, seizing, and forfeiture of criminal proceeds. Both countries seek to rely on bilateral mutual legal assistance to implement forfeiture orders, and seek to avoid unilateral enforcement action of forfeiture orders to the extent possible.

The two countries, recognizing the importance of open trade and investment in fostering economic growth, job creation, innovation, and prosperity, re-affirmed their commitment to take further steps to liberalize global trade and investment, and to oppose all forms of trade and investment protectionism. The two sides reaffirmed their commitment to work proactively to resolve bilateral trade and investment disputes in a constructive, cooperative, and mutually beneficial manner.

China will take stock of the results of the Special Campaign against IPR Infringement and Fake and Shoddy Products (Special Campaign), and improve on the high-level, long-term mechanism of IPR protection and enforcement, building on the Special Campaign currently in place. China will strengthen the government inspection mechanism so as to make sure that the software being used by the government agencies at all levels is legitimate. China and the United States will strengthen cooperation in the JCCT IPR Working Group on software legalization.

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China and the United States reaffirm their prior SED outcomes on transparency. The United States welcomes China’s statement that it will issue a measure in 2011, to implement the requirement to publish all proposed trade- and economic-related administrative regulations and departmental rules on the SCLAO website for a public comment period of not less than 30 days from the date of publication, except as specified in China’s Protocol of Accession to the WTO or in public emergency situations. China will steadily increase its solicitation of public opinions on regulatory documents with a direct influence on the rights and obligations of citizens, legal persons, or other organizations. China welcomes the United States’ commitment to implement measures in 2011, to enhance regulatory transparency, including by taking steps to ensure the online publication of the text of proposed regulations, as well as supporting technical and scientific information, at www.Regulations.gov for a public comment period of 60 days, and the United States’ decision to strengthen the Office of Management and Budget’s participation in the ongoing Transparency Dialogue.

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The United States and China agree on the importance of fostering an open, transparent and predictable investment climate. The United States and China affirm that the enforcement policies of their national competition agencies are not to discriminate on the basis of nationality.

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The Civil Aviation Authorities of the United States and China will strengthen communication and cooperation in the field of aircraft airworthiness certification, through currently established channels, in order to promote reciprocal acceptance of civil transport category airplanes.